Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio

Disney, Kaiser Permanente, Warner Bros. are among largest tenants

Los Angeles /
Nov.November 17, 2020 08:00 AM
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)

Home to major studios for Disney, Warner Bros. and Comcast’s NBCUniversal, the Burbank Media District is one of the major hubs of the global media and entertainment industry.

Blackstone made a big play in this neighborhood in 2017 when it acquired majority stakes in a handful of office buildings co-owned by Santa Monica-based Worthe Real Estate Group. The portfolio included the Tower at Burbank at 3900 West Alameda Avenue, Pinnacle 1 and 2 at 3300 and 3400 West Olive Avenue, and a quartet of properties that Blackstone would refinance with a $1 billion loan from Deutsche Bank and UBS.

That loan was securitized into several CMBS transactions, including a single-borrower deal dubbed DBUBS 2017-BRBK. Documents associated with the refinancing provide an inside look at the finances of these four office properties.

Included in the collateral are:

  • Media Studios, a five-building, 930,000-square-foot complex near Hollywood Burbank Airport that was redeveloped in stages from 1998 to 2005
  • The Pointe, a 14-story 480,000-square-foot building at 2900 West Alameda Avenue that Worthe built in 2009
  • 3800 West Alameda Avenue, a 20-story, 425,000-square-foot office tower that Worthe bought from Disney in 2007
  • Central Park, a 14-story, 256,000-square-foot property built in 1985

The largest tenant across the portfolio is the Walt Disney Company, occupying nearly all of 3800 Alameda, which serves as the world headquarters for Radio Disney and the broadcasting base for the Disney Channel, as well as a backup for East Coast operations including ESPN. Separately, Disney’s film production arm Walt Disney Pictures occupies 150,000 square feet at the Media Studios complex.

Health care company Kaiser Permanente is the largest tenant at Media Studios and the second-largest overall, with 194,000 square feet — about 20 percent of total rentable space — and gross rent of about $40 per square foot.

The third largest tenant in the portfolio is Warner Bros., with 100,000 square feet at the Pointe and 62,000 at Central Park. The media conglomerate plans to consolidate its office space at the nearby, 35-acre Burbank Studios, which it bought from Worthe and Stockbridge last year. Completion of the 800,000-square-foot Frank Gehry–designed complex is set for 2023.





    Related Articles

    arrow_forward_ios
    From left: Hasbro's Chris Cocks and Worthe Real Estate Group's with 333 West Empire Avenue (Hasbro, The Ocean Avenue Project, Loopnet, Getty)
    Hasbro seeks to sublease office with 80K sf in Burbank
    Hasbro seeks to sublease office with 80K sf in Burbank
    WeWork's Sandeep Mathrani and Worthe Real Estate's Jeff Worthe with 3900 West Alameda Avenue (WeWork, Getty, The Tower)
    WeWork to close Burbank location
    WeWork to close Burbank location
    Google CEO Sundar Pichai, Hudson Pacific Properties CEO Victor Coleman and One Westside at 10800 Pico Boulevard (Getty, Hudson Pacific Properties)
    Google faces delays on One Westside buildout
    Google faces delays on One Westside buildout
    Virgin Hyperloop Interim CEO/CFO and Board Member Raja P. Narayanan and ROW DTLA (ROW DTLA, LinkedIn/rajanarayanan)
    Virgin Hyperloop moves HQ to Atlas Capital’s Row DTLA
    Virgin Hyperloop moves HQ to Atlas Capital’s Row DTLA
    Worthe Real Estate's Jeff Worthe with 3201 W. Olive Avenue (Getty Images, Wolcott Architecture)
    Prominent Burbank intersection to feature 144-unit apartment project
    Prominent Burbank intersection to feature 144-unit apartment project
    Ben Horowitz and Marc Andreessen with 1305 2nd Street in Santa Monica (Getty, KFA)
    Andreessen Horowitz signs lease in Santa Monica
    Andreessen Horowitz signs lease in Santa Monica
    (Illustration by The Real Deal with Getty Images)
    Rent-controlled rates ratchet up along with inflation
    Rent-controlled rates ratchet up along with inflation
    Revolve's Michael Mente and Mike Karanikolas with ROW DTLA in the Arts District (Revolve, Google Maps)
    Influencer fashion brand, furniture maker sign leases in Arts District
    Influencer fashion brand, furniture maker sign leases in Arts District
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...